Rhodes Center Podcast: What if I told you that international money is...

About this Video

• Video Title: Rhodes Center Podcast: What if I told you that international money is...
• Channel: Watson Institute for International and Public Affairs
• Speakers: Mark Blyth, James Ashley Morrison
• Duration: 00:36:04

Introduction

This podcast episode challenges the conventional narrative of the gold standard's role in the global economy. James Ashley Morrison, author of England's Cross of Gold, argues that the gold standard was more of an idea and a set of beliefs than a strict economic reality, significantly impacting how we understand economic history and policy.

Key Takeaways

• The Gold Standard as an Idea: The podcast refutes the commonly held belief in a consistently applied, material gold standard. Morrison argues it was always more a matter of belief and political agreement than strict economic practice.
• Contested Understandings of the Gold Standard: Even those committed to restoring the gold standard after World War I disagreed on its definition, application, and efficacy. This highlights the role of belief systems in shaping economic policy.
• The Role of Credibility and Monetary Authority: The commitment to the gold standard stemmed from a belief that tying the hands of monetary authorities prevented hyperinflation. This fear was reinforced by the hyperinflation experienced in Central and Eastern Europe after abandoning the gold standard in the 1920s.
• Political Economy and Partisanship: The podcast challenges conventional political economy models that assume predictable preferences based on asset holding versus wage earning. Morrison provides evidence that actual preferences were often contrary to these assumptions.
• Myths and the Restoration of Greatness: The pursuit of restoring the gold standard was frequently tied to a desire to restore a mythical past, a "restoration of greatness," leading to potentially catastrophic consequences (deflation and unemployment).